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Chapter-4 Other Sources of Credit

This document discusses other sources of credit besides banks. It outlines individual money lenders, commercial establishments like stores, pawnshops, insurance companies, and government financing institutions as potential credit sources. It also mentions international organizations that provide assistance, such as the IMF, World Bank, and ADB, as well as the concept of filipinization of credit in the Philippines.

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631 views

Chapter-4 Other Sources of Credit

This document discusses other sources of credit besides banks. It outlines individual money lenders, commercial establishments like stores, pawnshops, insurance companies, and government financing institutions as potential credit sources. It also mentions international organizations that provide assistance, such as the IMF, World Bank, and ADB, as well as the concept of filipinization of credit in the Philippines.

Uploaded by

bateloshang01
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CHAPTER-4

OTHER
SOURCES
OF CREDIT
FM3D
REPORTER’S:
INTANO, ALJUN
GUINSOD, LIEZEL
THYNK UNLIMITED

What is Credit?

Other Sources of Credit


A.Individual Money Lender

Outlines: BCommercial establishment


C.Pawnshops
D.Insurance Companies
E.Government Financing Institution

Different International
organizations and their estend
assistance; and
Understand the filipinization of
credit
THYNK UNLIMITED

What is Credit ?
Credit refers to the ability to obtain a fee of value
in exchange for a promise to pay with money or
something equally to the seller in the future time

A loan is a sum of money that is borrowed and


expected to be paid back with interest over a
specified period. It can be obtained from various
sources such as banks, financial institutions, or
individuals.
Other Sources of Credit
INDIVIDUAL MONEY LENDER
Individual Money Lender
It Composed of unlicensed money lenders that laughter
lend their money at a very high interest rate.

"individual money lender" is "private lender" or "private


creditor." These are individuals who lend money directly
to borrowers, often outside the traditional banking
system. Private lenders may include friends, family
members, or individuals who specialize in lending money
for various purposes.
Commercial
establishment
Satisfy a wide range of consumers need for personal
and durable goods. ( Some examples of this is Retail
stores, Grocery stores and Super Markets.)

"commercial establishment" is "business premises" or


simply "business." A commercial establishment refers
to any physical location where commercial activities
take place, such as retail stores, restaurants, offices,
factories, and warehouses.
.
Pawnshops
A business that offers secured loans to people
with items or personal property used as collateral.

Pawnshops are also referred to as "pawnbrokers" or


"pawn shops." These establishments provide loans to
individuals in exchange for personal property, which
serves as collateral. If the borrower fails to repay the
loan within the agreed-upon timeframe, the
pawnshop may sell the collateral to recoup the loan
amount.
Insurance
Companies
"Insurance company" is "insurer" or "insurance
carrier." These entities provide insurance policies to
individuals or businesses in exchange for premiums.
Insurance companies manage risk by pooling
resources from policyholders and providing financial
compensation for covered losses or events.

It was considered as one of the biggest money


landing sectors in the society.
Government financing institution
"Government financing institution" is "development bank" or "government-sponsored enterprise." These
institutions are typically established or supported by the government to provide financing and support for
various developmental projects, infrastructure initiatives, or specific sectors of the economy. Development
banks often offer loans, guarantees, and other financial services to stimulate economic growth and
development.

for private employees


SSS
for government employees
GSIS for both private and government
PAG-IBIG FUNDS employees
for those businessmen were at a
PHILIPPINE NATIONAL BANK
very disadvantageous position .
Different international organization FILIPINIZATION CREDIT
and their extended assistance;

International
"Filipinization credit" is a policy in
Monetary the Philippines promoting local
Fund (IMF)
business ownership and control,
Asian
World Bank
often requiring foreign ownership
Development
Bank (ADB) transfers to Filipino citizens. It also
United Nations includes regulations in finance and
Development
banking, requiring a certain
Programme
(UNDP) percentage of ownership or
management in banks to be held by
Filipinos. The specific meaning may
vary without context.
REFERENCE:
International Monetary Fund. (n.d.).
What We Do. Retrieved January 28,
2022, from Add a little bit of body
text

THANK
Investopedia. (n.d.). Private Lender. In
Investopedia. Retrieved January 28, 2022
from Add a little bit of body text

Bangko Sentral ng Pilipinas (BSP).

YOU
(n.d.). Foreign Exchange Transactions.
Retrieved January 28, 2022, from Add a
little bit of body text

Philippine Trade Training Center


(PTTC). (n.d.). Understanding
Philippines' Foreign Investment Act.
Retrieved January 28, 2022, from Add a
little bit of body text

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